The Avalanche Foundation, known for its support of the Avalanche blockchain, has unveiled an “eligibility framework” outlining rules for purchasing meme coins. Amidst the popularity and controversies surrounding these highly volatile cryptocurrencies, the foundation is taking steps to ensure responsible acquisition.
The Avalanche Foundation is an organization that supports and fosters community initiatives on the Avalanche blockchain. Avalanche is a decentralized, open-source proof-of-stake blockchain with smart contract functionality, and the Avalanche Foundation plays a key role in promoting and sustaining innovation and development within the Avalanche ecosystem.
Avalanche’s unique architecture consists of three individual blockchains: the X-Chain, C-Chain, and P-Chain, each with a distinct purpose. The X-Chain is used for creating and trading assets, while the C-Chain is used for creating and executing smart contracts.
The P-Chain is used for managing and securing the network. Avalanche uses a consensus mechanism called Avalanche consensus, which allows for high throughput and low latency, making it one of the fastest smart contract platforms in the blockchain industry. The platform’s native cryptocurrency is AVAX, which is used for transaction fees, staking, and governance.
The Foundation said that meme coins on the Avalanche blockchain must be independent, meeting criteria like 2,000 holders, diversified ownership, $200,000 liquidity from 50 providers, a market cap of $1 million, and a daily trading volume exceeding $100,000 for two weeks. The foundation emphasized preventing scams, promoting transparency, and supporting tokens that contribute to the culture within the blockchain community.
It added that while its criteria for meme coins are flexible, meeting them doesn’t ensure acquisition. The organization pledges to evaluate each case individually. They’ve started buying meme coins from their $100 million “Culture Catalyst” fund, but details on specific tokens acquired, allocated capital, and active management of positions remain undisclosed.
Meme coins are a type of cryptocurrency that originated from internet memes or have some other humorous characteristic. The first meme coin was Dogecoin, created in 2013 as a joke on the Doge meme by software engineers.
This sparked the creation of several subsequent meme coins, with notable examples including Shiba Inu and Floki Inu. Meme coins have surged in popularity since Elon Musk endorsed the use of Dogecoin, one of the first meme coins. And since the launch of Dogecoin, the crypto market has seen thousands of meme tokens, with very few still standing and the others lost the rug or abandoned.
